If you buy a house in Willow Glen this fall, what are the parcels around it allowed to become? A listing won't say, and neither will the disclosure packet or the median price you've already seen. The answer now depends heavily on one measurement: the straight-line distance from a parcel to the nearest pedestrian entrance of a Caltrain or VTA light rail stop.
Most of this summer's coverage focused on San José's General Plan debate over allowing up to 32 homes per acre on single-family streets. That debate matters, but it won't produce a final proposal until December 2027. A different rule took effect on July 1, 2026, and for parcels near transit, it already sets the limits a city can't go below.
California's SB 79 was signed on October 10, 2025, and took effect statewide on July 1, 2026. According to the California Department of Housing and Community Development, cities had to start processing qualifying projects on that date. Santa Clara County is one of the covered Bay Area counties, and MTC's regional map lists Caltrain and VTA light rail stops as qualifying stop types.
The line that matters most to a Willow Glen buyer is in the bill text:
"A housing development project shall be an allowed use as a transit-oriented housing development on any site zoned for residential, mixed, or commercial development within one-half or one-quarter mile of a transit-oriented development stop..."
The law says "residential," not "multifamily." A qualifying project needs at least five units, a density of at least 30 units per acre, and an average unit size of no more than 1,750 net habitable square feet. San José's own staff, in a January 9, 2026 memo to the City Council, wrote that "large areas of lower density commercial and single-family housing are within the ½-mile TOD zones."
The ceilings a city can't set below depend on the type of stop and the distance from it. Tier 1 stops are served by heavy rail or very-high-frequency commuter rail. Tier 2 covers light rail, high-frequency commuter rail, and qualifying dedicated-lane bus service. "Adjacent" means within 200 feet of a pedestrian access point.
| Distance from stop | Tier 1 height / density / FAR | Tier 2 height / density / FAR |
|---|---|---|
| Adjacent, within 200 ft | 95 ft / 160 units per acre / 4.5 | 85 ft / 140 units per acre / 4.0 |
| Within ¼ mile | 75 ft / 120 units per acre / 3.5 | 65 ft / 100 units per acre / 3.0 |
| ¼ to ½ mile | 65 ft / 100 units per acre / 3.0 | 55 ft / 80 units per acre / 2.5 |
These numbers limit how far a city can restrict a project. They don't require anyone to build to the maximum. The law also has guardrails. Projects over 10 units generally have to include a share of affordable homes: 7% extremely-low-income, 10% very-low-income, or 13% low-income, unless a stronger local requirement applies. A project also can't be built on a site with more than two units if it would mean demolishing rent- or price-controlled housing that tenants have lived in within the past seven years. It also can't go on a site where more than two units were demolished in the seven years before the application, if any of those units were rent- or price-controlled.
The city's January memo modeled three station areas, chosen to represent high, medium, and low existing zoned capacity. Tamien was the medium case. It's classified as Tier 1 and is covered by the Tamien Station Area Specific Plan.
Staff estimated about 10,434 units of existing zoned capacity in the Tamien area and about 33,717 units under SB 79, which moves average allowed density from 24.4 to 78.8 units per acre. That's roughly triple the capacity in one station area, created by state law rather than a vote of the City Council.
Two more findings in the memo point the same way. None of the three station areas qualified for SB 79's "delayed effectuation" option, which could have postponed the law locally. Staff also called a local alternative plan "likely infeasible in the near term."
The one carve-out San José has adopted doesn't cover neighborhoods. Ordinance No. 31316 was finally adopted March 24, 2026, and took effect April 24, 2026. It excludes certain industrial employment areas, and even there, SB 79 still applies to parcels where the General Plan already allows housing. For residential parcels in Willow Glen, the state rules apply as written wherever the half-mile zones reach.
The General Plan 4-Year Review is the slower of the two timelines, and it drew the crowd. A June 15, 2026 city presentation, posted by the Willow Glen Neighborhood Association, proposed raising Residential Neighborhood density from 8 to 32 units per acre. The same deck included a table of what that could mean by lot size:
The deck also noted that development standards would narrow those numbers further. It listed a 35-foot, three-story maximum height, with a possible reduction toward the rear of a lot, along with floor area ratio and lot coverage limits. San José's current floor area ratios were shown as 0.45 for a single-family home and 0.65 for a duplex.
In its August 13 position paper, WGNA said it supports the goals of Envision San José 2040 but opposes raising single-family density to 32 units per acre across the whole city.
At the August 18 meeting, the City Council voted 8–3 to advance a policy framework. As San José Spotlight reported, councilmembers declined to fully endorse the 32-unit proposal for the 85% of the city's residential land zoned for single-family homes. Councilmembers Domingo Candelas, George Casey, and Bien Doan voted no. Planners said that on a typically sized parcel, 32 units per acre would allow about four homes in buildings up to three stories, and larger parcels could hold as many as 10. Mayor Matt Mahan said, "I do think we really need to be thoughtful about how we manage change out in our neighborhoods," and hinted he may prefer a more targeted approach.
The city's review page lists the Council's specific instructions to staff:
Staff is now working on policy analysis and environmental review. None of these density options is zoning yet. For an interior Willow Glen lot far from any station, the rules in force today are still the current ones, plus existing state laws like SB 9. The June presentation summarized SB 9 as allowing up to four units on a single-family parcel through a duplex or lot split, with an owner-occupancy requirement.
Willow Glen already has an example of a project approved outside both timelines. In December 2025, the city approved Redco Development's plan for a seven-story building at 940 Willow St. It has 126 apartments over ground-floor retail on a site of roughly one acre, including 20 below-market-rate units. The approval came under the state's Builder's Remedy, despite the site's zoning, according to San José Spotlight.
On April 17, 2026, a lawsuit was filed challenging the city's sewer-capacity analysis, which the city had relied on for the project's environmental-review exemption. The suit asks to halt the project until an independent inspection is done. City Public Works staff had defended the analysis at a March hearing, Spotlight reported in May. We haven't found a later report on how the case has developed.
The takeaway from 940 Willow is that state housing law can change what is allowed on a specific Willow Glen site regardless of where the citywide debate stands.
None of this shows up in a listing, so the work happens during due diligence. Here is how the public tools work:
Does SB 79 mean a tall building is going up next door? No. It sets limits a city can't go below for projects that meet the law's requirements, including at least five units and 30 units per acre. Whether anything gets built depends on owners and developers.
When will the citywide density decision be final? The city expects to bring final proposed General Plan amendments and ordinances to the Planning Commission and City Council in December 2027.
Did San José exempt any neighborhoods from SB 79? Its adopted ordinance covers industrial employment areas, such as North San José and the Monterey Business Corridor. It doesn't cover residential neighborhoods.
If you're weighing a Willow Glen home and want to know which zoning timeline applies to the parcels around it, Diane Bucher Real Estate Group can look up the address on the current SB 79 maps with you before you write an offer. Request your personalized home valuation, and we'll include that check.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.